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Transportation

Paper Session

Tuesday, Jan. 5, 2021 3:45 PM - 5:45 PM (EST)

Hosted By: American Real Estate and Urban Economics Association
  • Chair: Siqi Zheng, Massachusetts Institute of Technology

How Infrastructure Shapes Comparative Advantage

Luis Baldomero Quintana
,
William & Mary

Abstract

This paper provides evidence that domestic trade costs are a source of national comparative advantage. I build a model of international trade and internal geography that considers both international shipping routes and input-output linkages. I use the model to simulate how a large infrastructure project, Ruta del Sol, affects the specialization of Colombia, a country whose exports are highly concentrated in the mining sector. This road improves access to global markets for both mining and manufacturing regions. To quantify the model and estimate its parameters, I use customs administrative records, a transportation survey, and geospatial data generated from both physical and digital road maps. My results indicate that the road project shifts the comparative advantage of Colombia away from mining, and towards manufacturing. Lastly, I show that the change in comparative advantage is larger when industry linkages are considered because access to tradable intermediate inputs benefits the manufacturing sector more than the mining sector. The results demonstrate that national comparative advantage is shaped materially by domestic trade costs, beyond the elements typically analyzed in the literature such as factor endowments, technology and institutions.

A Free Ticket to Ride: Evidence on the Effects of Subsidized Public Transportation

David Phillips
,
University of Notre Dame
Rebecca Brough
,
University of Notre Dame
Matthew Freedman
,
University of California-Irvine

Abstract

Reduced transit fare programs targeted at low-income people are increasingly prevalent. This paper describes the results of a unique experiment in which a randomly selected group of low-income residents in King County, Washington received up to six months of free public transit. We leverage the experiment to explore the extent to which cost represents an obstacle to transit use as well as whether greater transit access affects other economic outcomes. Early results point to a signifi
cant increase in transit ridership when fares are free, but little persistent effect on observed transit use after the subsidy period ends.

Estimating Congestion Externalities Using Big Data

Antonio M. Bento
,
University of Southern California
Jonathan D. Hall
,
University of Toronto
Kilian Heilmann
,
University of Southern California

Abstract

Traffic congestion is a major problem in large cities worldwide. This paper uses high-frequency data from the Los Angeles metropolitan area combined with an instrument that varies spatially and temporally to estimate the causal impact of an additional vehicle mile traveled on travel times. Specifically, we exploit the network structure of the Los Angeles highway system and use accidents on close alternative routes as exogenous shocks to traffic demand. To do so, we rely on Google Maps to determine the ideal route and alternatives for over 19,000 real-world commutes. We estimate that at peak times an additional trip reduces speed by, on average, 0.22%. We find the optimal toll at peak times is 33 cents per mile, with the toll being lower, even zero, off-peak. We show how this toll varies over space and time, as well as report on its distributional effects. This toll would more than double highway speeds during peak times and only requires reducing vehicle miles traveled at the peak by 10%.The resulting social welfare gains are over two billion dollars per year.

Do School Buses Make School Choice Work?

Amy Schwartz
,
Syracuse University
Samantha Trajkowski
,
Syracuse University
Jeffrey Zabel
,
Tufts University

Abstract

While school choice has been well studied, there is little literature on the role that transportation, namely school buses, plays in this decision. This study examines the effect of school buses on school choice decisions, using data on students and their eligibility for transportation assistance in New York City public schools in 2017. Using both conditional logit school choice models and regression discontinuity designs, we provide both descriptive and causal evidence on the impact of distance and bus availability, and how these two interact with one another, on school choice decisions. Our results indicate that distance deters students from choosing a school, as families are less likely to choose schools further from home, but school buses can partially overcome this impediment, particularly for charter schools in 3rd grade. These results will be useful for policy makers looking to leverage school transportation policy to improve school choice decisions, and ultimately student outcomes.
Discussant(s)
Wen-Chi Liao
,
National University of Singapore
Juan Palacios
,
Massachusetts Institute of Technology
Junfu Zhang
,
Clark University
Keren Horn
,
University of Massachusetts-Boston
JEL Classifications
  • R4 - Transportation Economics